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Artificial intelligence (AI) darling Nvidia Corporation (NVDA) has hit a strange phase lately. The chip giant keeps delivering blockbuster earnings, and yet investors barely seem impressed. And notably, the issue has little to do with Nvidia’s underlying business fundamentals. On May 20, the chip giant once again delivered a stellar fiscal 2027 first-quarter earnings report that checked virtually every box Wall Street was looking for.
Nvidia posted double-digit revenue growth, record-breaking sales, stronger-than-expected top- and bottom-line results, relentless demand for its data center business, and even announced a meaningful increase to its capital return program for shareholders. On paper, it looked like the perfect recipe for a stock rally. Instead, shares slipped about 1.8% following the earnings release. But this isn’t exactly new territory for Nvidia investors. Nvidia’s stock has repeatedly sold off after earnings over the past year, even while the company continued to shatter expectations and raise guidance.
